Capital One Survey Shows Most Parents of Teenagers Want to Be Better
Financial Role Models Yet Don't Take Advantage of Key Teaching
Financial Role Models Yet Don't Take Advantage of Key Teaching
MCLEAN, Va., Apr 19, 2010 (BUSINESS WIRE) --While most parents say they want to be better financial role models for their teens, too few parents are capitalizing on key opportunities to talk with teens about important money management topics, according to a new survey of parents and teens from Capital One Financial Corporation (NYSE:COF).
More than 80 percent of parents surveyed say they want to be better role models for their children regarding money management and that they have made money mistakes they want their own children to avoid. Yet, more than a third (35 percent) of teen respondents said that when they ask for money, their parents rarely or never use these occasions to discuss topics such as budgeting and planning for the future. More than half (53 percent) of parents surveyed report that their teen asks them for money at least once a week, providing ample opportunities for parents to talk with teens about making positive financial choices. However, for many parents and teens, these conversations instead turn into disagreements. Nearly one-third (29 percent) of parents of teens surveyed said they argue with their teen about money at least every month.
While talking about money can be difficult, more than half of teen respondents (53 percent) said they want to learn more about topics like budgeting, saving and credit. Teens also reported that their parents are their primary resource for learning about money management.
In recognition of Financial Literacy Month and the importance of developing solid money management skills as part of a teen's successful development, Capital One and Search Institute have partnered to create Bank ItSM, an innovative, multimedia financial literacy program that helps parents and teens talk about, understand and manage money. Through an interactive web site (www.bankit.com) and local face-to-face workshops, the program empowers families to explore twelve key topics, including budgets, goals and strategies for making financial choices that count. Bank It is also designed to reach families where they are most comfortable, whether online or through a local community-based organization. The survey results found that the number one preferred setting for both parents and teens to learn about how to discuss money management topics is through an online resource.
"Bank It was designed to help parents and teens more easily and effectively talk about financial choices, challenges and dreams. Through free, easy-to-use online tools, parents and teens can work together to learn practical skills for making positive money choices and avoiding common mistakes," said Carolyn Berkowitz, Vice President, Community Affairs, Capital One. "Capital One is committed to investing in programs that help children, teens and adults increase their money management skills through innovative, interactive learning opportunities. Our goal with these programs is to help to set individuals of all ages on the path to a life of fiscal responsibility and economic success."
Bank It blends financial information with Search Institute's research-based framework of Developmental Assets, a widely used approach to youth development in communities, schools, families and youth organizations. The Institute's Developmental Assets identify the relationships, opportunities, skills, values and commitments young people need to make wise choices and succeed in life. Many assets are foundational for money management, including planning and decision-making, positive family communication, and a positive view of the future.
"Our research shows that the more of these Developmental Assets a teen has, the more likely it is that he or she will make responsible money decisions. Through this program, we hope to help open the lines of communication between parents and teens and make them more comfortable talking about money management," said Gene Roehlkepartain, Vice President, Search Institute. "Search Institute is proud to partner with Capital One to create this unique financial literacy program. We know that families who talk about financial challenges, values and choices together are stronger and make better money decisions."
Capital One's survey found that while many parents report discussing budgeting, saving and needs versus wants with their teens, other key money management elements such as financial goals, banking and credit are discussed less often. Bank It introduces all 29 "National Standards in K-12 Personal Finance Education" from the Jump$tart Coalition for Personal Financial Literacy, so parents can feel confident that their teens are learning all the key topics in money management.
For more information and to access the Bank It program, visit www.bankit.com.
Braun Research was engaged to conduct 500 interviews with parents as well as their 13-18 year olds throughout the United States. In order to achieve two interviews per household, Braun Research interviewed 802 households with parents and continued until 500 teens were reached in the same households. Statistics reported in this release reflect the answers of the 500 parents whose teens were also interviewed. While 172 interviews with parents were immediately followed by in-home teen interviews, the additional 328 teens required re-contact at a later date. All surveys conducted by telephone from March 13th through March 25th, 2010. The margin of error for the interviews is +/- 3.46 percentage points at the 95% confidence level. Interviews were monitored at random. Sampling for this study was conducted across the United States using a national probability sample of all exchanges and area codes of households with someone between the ages of 13-18 living there. All interviews were conducted using a computer assisted telephone interviewing system. Statistical weights were designed from United States Census Bureau statistics.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $115.8 billion in deposits and $212.0 billion in total managed assets outstanding as of December 31, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
About Search Institute
Search Institute is an independent, nonprofit, nonsectarian organization whose mission is to provide leadership, knowledge, and resources to promote healthy children, youth, and communities. To accomplish this mission, the institute conducts research, communicates new knowledge, and brings together community, state, and national leaders. For more information, visit www.search-institute.org.
SOURCE: Capital One Financial Corporation
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